City Council Passes Bills to Limit Lobbyists' Influence

By SEWELL CHAN

Published: May 25, 2006

The City Council unanimously approved three bills yesterday intended to curb the influence of lobbyists on elected officials, despite the concerns of three civic groups that noted that lobbyists would still be able to bundle campaign donations to candidates and then have those contributions matched by public funds.

Speaker Christine C. Quinn, who introduced the measures in February in a joint announcement with Mayor Michael R. Bloomberg, called the new rules among the most significant political reforms in the city in nearly 20 years.

''These bills take a very significant step forward as it relates to reducing the culture of lobbying at City Hall and creating a very, very strong ethical infrastructure that will make sure that the scandals which have rocked other legislatures in the country don't happen here,'' she said.

Mr. Bloomberg described the bills as ''groundbreaking.'' In a statement, he said, ''The operation of government must be beyond reproach, and these reforms will not only help prevent future scandal but will help bolster New Yorkers' faith in their local government.''

The first measure will add enforcement powers and trained investigators to the city clerk's office, which is supposed to oversee lobbyists but has ''served as a mere storehouse for lobbyist information,'' according to a Council report.

The clerk will be required to post lobbyists' disclosure reports on the Internet. Lobbyists will have to disclose more of their activities, as well as the names of their spouses, minor children and employees.

Penalties will be doubled: to $30,000 for willful violations of the lobbying laws and $20,000 for failure to submit statements and reports. Lobbyists who are also professional fund-raisers or political consultants will have to disclose those activities.

The second bill bans all gifts from lobbyists to elected officials and civil servants, replacing the current $50 annual limit. However, the bill has been amended to allow the Conflicts of Interest Board to create exceptions for small gifts like pens, mugs and T-shirts. It could also make an exception for gifts ''on family or social occasions'' to elected officials and city employees from relatives or friends who happen to be lobbyists.

Violations of the gift provision will be punishable by civil penalties ranging from $2,500 to $30,000 and, for multiple offenses, a misdemeanor prosecution.

The third bill makes donations to candidates from lobbyists and their spouses, domestic partners and minor children ineligible for public matching funds. However, three civic organizations -- Citizens Union, Common Cause New York and the New York Public Interest Research Group -- said they believed the measure should have made ''bundled'' donations solicited by lobbyists ineligible for matching funds as well.

''The influence that intermediary 'bundlers' have over the political process by virtue of their ability to collect contributions from individuals and present them in aggregate to candidates running for elected office must be examined,'' said Doug Israel, director of public policy and advocacy at Citizens Union.

Others had a different criticism. Councilman Erik Martin Dilan of Brooklyn voted for all three bills to restrict lobbying but said the ban on matching funds for contributions from lobbyists made him uncomfortable. ''All rights of all New Yorkers when it relates to campaign finance should be exactly equal,'' he said.

Ms. Quinn, in a news conference before the vote, said she was open to considering an anti-bundling measure in the future. ''What we're doing today is a very significant step,'' she said. ''I'm also under no illusion that what we're doing today should be our final step on this matter.''

Mr. Bloomberg said, ''I look forward to working with the Council in the future to enact even more far-reaching reforms.''

The three measures were approved 49 to 0. Two members, Miguel Martinez of Manhattan and Dennis P. Gallagher of Queens, were absent.

As part of the same vote, the Council approved a measure, with Mr. Bloomberg's support, that affects a previously scheduled sale of 308 taxicab medallions next month. Under the bill, 254 medallions will be restricted for use by alternative-fuel cabs and 54 for wheelchair-accessible cabs. There are 27 of each type now in use. The auction will expand the number of yellow cabs to 13,087.

Under a related agreement, Mr. Bloomberg will seek approval in Albany for the city to sell an additional 150 medallions, all to be reserved for wheelchair-accessible cabs.

On another matter, the Council voted 39 to 10 to approve Mr. Bloomberg's nomination of Margery H. Perlmutter, a lawyer, to an unpaid seat on the 11-member Landmarks Preservation Commission.

During a committee meeting, community advocates objected to the nomination, saying that Ms. Perlmutter -- a registered lobbyist who works at the law firm Bryan Cave -- would have conflicts of interest.

''It sends a very poor message to the preservation community and the good-government community of this city to allow this nomination to go ahead,'' said Councilman Tony Avella of Queens.